Washington, D.C. – The Campaign for Sustainable Rx Pricing (CSRxP) today released a statement in response to the Congressional Budget Office’s (CBO) release of an analysis on the U.S. Department of Health and Human Services’ (HHS) proposed Rebate Rule:

“The CBO’s analysis reinforces the fact that the Rebate Rule is a misguided regulation that will hurt American patients and taxpayers,” said CSRxP executive director Lauren Aronson. “The proposed rule hits seniors, the disabled and taxpayers with premium hikes and nearly $200 billion in federal spending without any guarantee it will curb rising drug prices.”

The CBO budget projections concluded the impact of the Rule would include:

A Massive Bailout For Big Pharma In The Form Of $137 Billion In Increased Drug Spending. (Center For Medicare & Medicaid Services Office Of The Actuary, Memo On Proposed Safe Harbor Regulation, 1/31/19)

“Not only does the Rebate Rule reward Big Pharma for its anti-competitive tactics, there is nothing in the rule that guarantees that drug manufacturers will lower prices by the full amount of existing rebates,” Aronson continued. “Big Pharma’s track record proves that given the ability to raise prices, they will do just that.”

“The administration has put forward several commendable proposals that would curb rising drug prices by bringing more transparency and competition into the market,” Aronson added. “We urge the administration to focus on those market-based solutions and abandon the Rebate Rule in light of the mounting evidence of its negative impact on seniors and taxpayers.”